Member Info for Raleigh

In conjunction with Sig's own guidance, of course.

I do not know who is selling. If one seller, that will take care of itself. If the selling is on account of econonomic concerns, I turn to the housebuilders for guidance.
It may not follow absolutely, that they are typical of Sig customers, but one looks somewhere. Taylor Wimpey was I think the last to update. They said, "With demand for our homes remaining strong, we ended the year with a total order book valued at £2,684 million (31 December 2019: £2,176 million), excluding joint ventures, which represents 10,685 homes (31 December 2019: 9,725 homes"
If TW and the others are representative, then it follows there is an existing, and ongoing demand from builders merchants, and opportunity for Sig. And we know construction is comparatively well-placed in the current economic climate.

Sig has proved so far it is good under new management for recovery. So on that we are invested in a sustainable company, moving toward profitability. But it appears the focus has changed now to the wider economy. Right company, economic jitters.

For what it is worth. He writes for Investors Chronice.
https://masterinvestor.co.uk/equities/chart-navigator-sig-brand-architects-and-science-in-sport/

In passing.
https://www.buildersmerchantsjournal.net/bmf-opens-32nd-centre-of-excellence-with-sig/

Very slow again. I think 33.5, around that, is the price below which it will not go - and have bought accordingly. Like 30p formed up before. That was low in my view considering the recapitalisation and offer- and now we have the very reasonable outlook for this year.

This is what we are looking at for this year, the 'near term benefits'.
"Providing there is no material disruption to either our business or end markets as a result of the pandemic, the Board expects the near term benefits of the actions taken in 2020 to deliver organic revenue growth in 2021, including market share gains. The benefits of this will become increasingly evident as the year progresses and should enable us to return to underlying operating profitability during the second half."

In the meantime the higher we can trade along as investors come and go, hopefully at 36p and above, the greater the incentive for those in profit to disappear - which improves the position for those us who stay - with new investors starting at the higher price with no intention of selling prior to the next leg, and perhaps after.

I just put them on for a bit of context around the company. May be interesting to some to see what the company is up to, that is all.
https://ukdefencejournal.org.uk/bae-systems-to-support-u-s-harrier-fleet-to-2029/

CITIGROUP RESUMES SIG WITH 'NEUTRAL' - TARGET 36 PENCE
On what we have seen, it will probably trade above in my opinion. I have seen nothing from Peel Hunt yet. I think they are still on 38p.

That is about the best one can say - no harm done.

Recovery proposition waiting for an update on that as scheduled. We had it on time. It was good, despite the great unknown creeping in as it can.
Next to arrive in the absence of anything else will be full results, with a bit more on what they have been up to - and should include a comment on trading for the time until then.
I imagine the price will float about a bit before then. When results arrive pundits may give it a little more attention.

https://www.ceca.co.uk/letter-from-beis-secretary-of-state-kwasi-kwarteng-mp-to-uk-construction-sector/

https://www.acenet.co.uk/news/industry/costain-partners-with-u-battery-on-modular-nuclear-reactor-design/

https://www.forbes.com/sites/davidaxe/2021/01/11/six-copter-spots-20-f-35s-two-islands-south-koreas-new-flattop-takes-shape/
https://ukdefencejournal.org.uk/british-f-35/

JEFFERIES RAISES SIG PRICE TARGET TO 31.40 (28.60) PENCE - 'HOLD'

Jefferies raise to 31.4 from 28.6 and give it a hold. They are behind the curve - it has been trading at 30p plus for some time. If one believes in a continued claw back of market share, and a return to operating profitability next, they will still be a few hours behind with a possible buy recommendation. My opinion only - you can only hold if you have some - as close to 31.4 as you can get if you want it. It may be difficult to get that price.

This is an early stage recovery stock, with the potential for a lot more to come. Commentators may draw attention later.

Marking the first update since CD and R involvement, a brief historical summary and my own thoughts, pending full results. Facts can and should be checked.
The pandemic is the elephant in the room, and as for all companies it brings difficult to assess trading vagaries with it. But that will pass, and construction and its supply chains are govt. supported with a view to assisting economic recovery through job creation and are therefore better placed than most.
As a specific turnaround prospect following pre-pandemic mismanagement, Sig recapitalised back in the summer and installed a new management team. As part of that recapitalisation cornerstoned by turnaround specialists CD and R ( who have since bought Wolseley ) investors were given the opportunity to add to their holdings at 30p. Many of us took that opportunity, including the largest shareholder IKO ( in the same line of business )
As a recapitalised specific early stage turnaround prospect, Sig has to prove itself capable of going forward in relative terms within the constraints of it's market, to the point of profitability and on from there. The trading update reflects the past year, and broadly speaking the second half represents the period of CD and R/new CEO Francis' involvement.
In a pandemic year, the immediate task for the new team was to stabilise market share ( claw- back to come later ) and start to improve profitability within the business. We were given guidance months ago, and today's update shows the extent to which Sig has performed against it.
On a yearly basis, revenue for the year is lower than the previous but comes in at 18% above the £1584m originally guided, moderately higher as anticipated. This is a recovery stock, and looking behind the yearly figures H2 revenue is 28 % higher than H1 2020 ( 817.7m, which was just a little higher than H2 2019. This is a recovery stock, and revenue is going well in the right direction.

The rate of loss is decreasing, and profitability is expected to improve to the extent that a cautiously reporting FTSE company is prepared to anticipate profitability will be reached in the second half - much as I had hoped.

In the absence of profitability, the company previously guided cash outflow would occur. There is ample funding, secured at the same time as recapitalisation, until May 2023 without tapping shareholders or other raise, giving time to move into profitability.

Sig has performed better than management guided. Reasonable expectations are therefore fulfilled, and thus I consider today's update sufficient to more than justify continued investment in the recovery process.

I have no idea where the share price will go today. Over the last 2 trading days investors have pitched the sp base at 30p.- I do not expect to be going in that direction.

Amey, Costain and Jacobs are among the firms to land places on a £300m Highways England framework for consultancy services. The move came as the organisation announced its executive director of operations Nick Harris will become acting chief executive next month.

The framework will cover work across Highways England projects, as well as Department for Transport projects, works on HS2, and Transport for London contracts. Appointed firms will carry out research and development services as well as consultancy services.

The framework is set to last for four years, and will include specialist and technical consultancy, engineering advice, and procurement advice across the transport bodies. All contracts under the framework are likely to be subcontracted to SMEs.

Suppliers on the first lot covering technical consulting, engineering advice and research and innovation are Amey, Atkins and Jacobs.

Costain, Arcadis, Pell Frischmann, TRL, Ove Arup and Partners, WSP, Arcadis, PwC, Roswell Wright, and Turner & Townsend were winners on the second lot, which covers procurement advice.

In essence, we are aware of nothing changing here since recapitalisation and enthusiasm for it at the time.So in my view, nor has the original investment case.
I too had hoped recapitalisation by turnaround specialists, coupled with new management and impetus would see us away from 30p. back in the summer. But not to be. I take your point with regard to 'non trading' companies, but suggest they may be more out of touch with reality than Sig. Losing a lot of money and nothing coming in. Over 6 months or a year, their prices are lower as expected but they seem to experience doses of enthusiasm - they are being traded heavily, possibly higher than their fundamentals should permit. An off the cuff comment.
Sig is a different proposition, starting again from the bottom that it had reached pre-pandemic. Now recapitalised, and with funding intended to last it without further raise until profitability. No repayments need be made on draw-downs until May 2023, and no doubt they aspire to reach profitability well before then. But it will not be now, nor in the current half, or very possibly ( at a guess) the next. So on Monday we have been told to expect a decreasing cash position.
I expect nothing dramatic in the trading update - in line as guided - revenue something a little better ( to take account of the improved construction market in the second half ) than the original £1584m for the year. And on profit, an indication that CD and R/Francis in house efforts are starting to slow losses, and therefore the benefit over time of their involvement.
The economy is shot, as they will probably reflect in the update, but construction is sounder than the majority of sectors, supported by govt. in ways that other sectors are not, as the primary means of job retention and creation - this sort of thing and there are a lot more.
https://www.constructionmanagermagazine.com/7bn-schools-framework-launched/
https://rcimag.co.uk/news/government-appoints-leader-for-construction-of-40-new-hospitals

Whatever do you mean by that? Sig needed recapitalising. CD and R saw something in it for themselves. And IKO and others joined in at 30p.